Permissible Investments and Approval Process
- Sinking funds may only be invested in securities issued by the Government of the Philippine Islands or the United States Government.
- The investments must comply with conditions and manner approved by the Secretary of Finance.
Procedures Regarding Bonds Held in Sinking Funds
- When sinking funds are used to acquire bonds from the same issue to which the fund pertains, these bonds may be cancelled.
- Cancellation requires the recommendation of the Secretary of Finance and approval from the Governor-General.
Accounting and Legal Status of Bonds in Sinking Funds
- The sinking fund must be credited with the face value of bonds of the related issue, regardless of whether the bonds are cancelled or held within the fund.
- Both cancelled bonds and those retained in the sinking fund are considered "outstanding" under the law defining the amount due in the sinking fund.
Repealing Clause
- All prior laws, acts, or parts thereof that conflict with this Act are repealed to the extent of such inconsistency.
Effectivity Clause
- The Act becomes effective immediately upon its approval by the legislative authority.